Texas Business Organizations Code

§ 21.551 — DEFINITIONS

BO § 21.551Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. L. DERIVATIVE PROCEEDINGS

Statute text

In this subchapter:

(1)"Derivative proceeding" means a civil suit in the right of a domestic corporation or, to the extent provided by Section 21.562, in the right of a foreign corporation.

(2)"Shareholder" includes:

(A)a shareholder as defined by Section 1.002;

(B)a beneficial owner whose shares are held in a voting trust or by a nominee on the beneficial owner's behalf; or

(C)two or more shareholders acting in concert under an informal or formal agreement or understanding with respect to a derivative proceeding. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by:

Legislative history

Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 1, eff. September 1, 2019. Acts 2021, 87th Leg., R.S., Ch. 39 (S.B. 1203), Sec. 23, eff. September 1, 2021. Acts 2025, 89th Leg., R.S., Ch. 21 (S.B. 29), Sec. 12, eff. May 14, 2025.